A frequently chosen form of employment is a management contract. Management contract (also called management contract) - is an unnamed civil law contract, the subject of which is to entrust the management of an enterprise to a natural person or another business entity in order to make a profit. The content of the legal relationship between the person entrusting the management of the company and the manager is determined each time by the parties. The components of the contract content include, among others: the subject of the contract - management of the enterprise, duties and rights of the manager, tasks to be performed by the manager, components of his remuneration, other additional benefits received by the manager, non-competition, trade secrets, responsibility for the performance of assigned tasks, criteria for assessing management effectiveness, methods of terminating the contract.
Contract revenues are considered revenues from activities performed personally and are therefore taxed in the manner provided for this type of revenue. Tax is settled on general principles, using the 18% and 32% tax scale. The costs of obtaining income are similar to employee costs and amount to PLN 111.25 per month, i.e. PLN 1,335 per year.
Salary tax is paid by the payer, i.e. the company employing the manager. By the end of February of the following year, it also prepares PIT 11, showing the manager's fee as the source.
Income from the above-mentioned contract cannot be obtained as part of a business activity, which results directly from Art. 13 section 9 of the Personal Income Tax Act. For this reason, the flat tax rate of 19% is excluded for them. The actual expenses incurred cannot also be recognized as tax deductible costs, but only up to the limit mentioned earlier.
In terms of paying ZUS contributions, the management contract is subject to contributions under the terms of the employment contract. It is subject to compulsory social, health and labor fund contributions. The employer is the payer of the contributions.
To sum up, income obtained under a management contract is income obtained from activities performed personally and cannot be recognized as business income. They are taxed according to the tax scale, the costs of obtaining income are limited to the statutory limit identical to that in the case of an employment contract. The contract is subject to ZUS contributions.
